Avecho Biotechnology has completed a share placement worth A$6 million, pushing the cumulative total from its recent fundraising efforts to $8m.
The company launched its capital raise in April, having initially brought in $2m of an $11m target.
Backed by both existing shareholders and incoming sophisticated and institutional investors, the placement will involve the issue of nearly 537 million shares priced at $0.006c each — a 33% discount to the August 22 closing price of $0.009c.
Proceeds from the raise will go toward funding Avecho's phase III clinical trial, which aims to evaluate its TPM soft-gel CBD capsule as a treatment for insomnia.
Chief executive Dr Paul Gavin described the current moment as an "advanced and defining chapter of clinical development for Avecho".
"In total we have raised approximately $8m in a very difficult financial climate to advance our proprietary TPM-enhanced soft-gel capsule," he said. "We have clear and bold ambitions for this study and are resolutely focused on the important work ahead."
The clinical trial will assess nightly CBD doses of 75mg and 150mg against a placebo.
